Cloud environments employ numerous cloud components that have a limited life expectancy. Cloud service providers that deploy and manage such cloud environments have applied numerous approaches to replace cloud components prior to component failure. One traditional replacement approach includes scheduled component replacement, whereby cloud components are replaced at regular intervals. While this approach can greatly reduce the potential for failure, this approach is costly because otherwise healthy cloud components are replaced before replacement is required. Another traditional replacement approach is based upon a policy of replacing a rack of cloud components when certain component failures exceed a fixed failure rate threshold. Both the scheduled replacement approach and the fixed failure rate threshold approach put mission critical applications at risk, and force a lower utilization percentage to ensure that all mission critical applications can be sustained during failures in the cloud environment.